Stock Market Update (5 Aug 26): Nifty up by 0.22% and Sensex by 0.80%

Indian markets are likely to be uncertain today amid strong cues from global markets, a firm rupee, DII fund outflows, and an awaiting monetary policy decision by the RBI. The previous session ended the day trading in the red after Iran's Foreign Ministry spokesman Esmail Baghaei said that no ​negotiations with the U.S were taking place and no meetings were scheduled.

Global cues

• Both Asian markets and U.S markets traded higher after U.S Treasury Secretary Scott Bessent said in an interview on CNBC’s “Squawk Box” that there is a chance to have a deal today or tomorrow with Iran to open the Strait and move towards a more normalised position in this conflict.

Gift Nifty

• On 5th August 2026, the GIFT Nifty traded in the red as domestic institutional investors exited from the Indian markets.

Asian Markets

• Asian markets traded higher, following a rally on Wall Street as investors hoped for an agreement between the United States and Iran that could restore traffic through the Strait of Hormuz.

US & European Markets

• The U.S markets traded higher, led by gains in tech stocks, with Palantir Technologies up by 29%, and financial stocks, with Goldman Sachs up by more than 2%.

• The United Kingdom’s FTSE closed trading in the green, led by gains in industrial metal miners such as ​Antofagasta and Anglo American, which advanced by 6.85% and 5.45%, respectively, as copper prices ⁠touched two-month highs, supported by falling inventories.
• The French index, CAC, traded in the green amid gains in STMicroelectronics, up by 6.49%, ArcelorMittal by 4.34%, and TP by 3.54%. 
• The German index, the DAX, closed trading in the green, led by gains in Infineon, up by 3.74%; Airbus, by 2.93%, and Bayer, by 2.40%.

Commodities

• Crude oil prices declined after Qatar said that an interim proposal had been prepared, and both U.S and Iran indicated that negotiations to restore access to the Strait of Hormuz were making progress.
• Precious metals, such as gold and silver, continued to trade higher amid a decline in crude prices and a weaker dollar index.
• Natural gas traded higher amid renewed buying interest after the recent decline.

Currency Movements

• The dollar index traded lower amid reports of an imminent interim agreement between the U.S and Iran to reopen the Strait of Hormuz, easing concerns over inflation and the need for additional interest rate hikes.
• The rupee rose against the other currencies ahead of the RBI's monetary policy decision, persistent FII buying, and decline in crude prices.

Sectors to watch

• Automobile Sector: The Society of Indian Automobile Manufacturers (SIAM) clarified media reports concerning fuel quality parameters, with specific and selective focus on chloride and sulphur content in fuel, emphasising the government's E20 initiative and its full support.
• Renewable Energy: The PM Surya Ghar scheme has crossed a milestone with over 50.06 lakh households now benefiting from rooftop solar installations across the country, with nearly 19 lakh households now receiving zero electricity bills after subsidy disbursement and over 12 lakh households earning significant income by selling surplus power back.
• Banking Sector: RBI Governor Sanjay Malhotra is scheduled to announce the monetary policy decision, with investors closely tracking the repo rate decision, monetary policy stance, inflation and GDP growth forecasts, and the governor's commentary on global risks and liquidity.
• Pharma Sector: The Indian Pharmaceutical Alliance (IPA) asked the domestic pharma industry to provide the names of drugs that have been marketed in India for years but are not approved by the national drug regulator, including sodium valproate and carbamazepine tablets, to get them regularised by the Central Drugs Standard Control Organisation (CDSCO).

Stocks to watch

• FSN E-commerce Ventures (Nykaa): Nykaa’s consolidated net profit rose to ₹79.7 crore in the quarter ended June 30, 2026, compared with ₹24.4 crore in the corresponding period last year.
• ONGC: ONGC posted stronger-than-expected earnings in Q1 FY2027, with profit more than doubling sequentially, led by higher realisations from premium-priced new well gas-lift earnings, even as production remained largely flat.
• HDFC Bank: HDFC Bank will be holding its 32nd Annual General Meeting (AGM) on August 5, with the meeting carrying added significance following the resignation of former non-executive chairman Atanu Chakraborty.
• Castrol India: Castrol India’s net profit rose by 42.5% YoY to ₹347 crore in Q1 FY2027 from ₹244 crore in the same quarter a year ago.
• LIC of India: The Life Insurance Corporation of India's (LIC of India) 4% stake, i.e., about 50.59 crore equity shares, will be oversubscribed by the Government of India through an offer-for-sale (OFS) on August 5.

FII and DII Inflows - 4th August 2026

(The above numbers are in ₹ Cr.)

• On 4th August, net fund inflows were at ₹1,510.33 crore, with domestic institutional investors (DIIs) as net sellers, booking profits, and foreign institutional investors (FIIs) as net buyers, on rising confidence in the Indian market.

Global Events & Updates

• On August 5, India will announce the RBI interest rate decision and the HSBC Composite and Services PMI Final data for July 2026.
• The United States will release S&P Global Services and Composite PMI final data and ISM Services data for July 2026 today.
• Italy, France, Germany, the United Kingdom, and the Eurozone will be releasing S&P Global Services and Composite PMI final data for July 2026 today.

Things to look out for

• Retail sales in Italy rose 3.1% YoY in June 2026, rose from a 2.2% increase in May, supported by stronger growth in non-food sales to 4.0% from 2.2% and a sustained increase in food sales at 1.9%. 
• Mexico's consumer confidence rose to 45 in July 2026 from 43.8 in June, the highest since October 2025, but sentiment remained negative as households were more optimistic about their current financial situation, with the corresponding index rising to 51.8 from 51.2, while perceptions of the current economic situation improved to 39.4 from 37.5.